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Table 1 shows the distribution of market income in an economy. The government redistributes income by collecting income taxes and paying benefits shown in table

Table 1 shows the distribution of market income in an economy. The government redistributes income by collecting income taxes and paying benefits shown in table 2.

Table 1

House holds

Income

(millions of

dollars per year)

Lowest 20%

5

Second 20%

10

Third 20%

18

Fourth 20%

28

Highest 20%

39

Table 2

House holds

Income

Tax

(percent)

Benefits

(millions of

Dollars)

Lowest 20%

0

10

Second 20%

10

8

Third 20%

18

3

Fourth 20%

28

0

Highest 20%

39

0

Calculate the income shares of each 20 percent of households after tax and benefits.

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